Financial Results
Fourth Quarter Fiscal 2018©2018 Micron Technology, Inc. All rights reserved. Information, products, and/or specifications are subject
to change without notice. All information is provided on an “AS IS” basis without warranties of any kind.
Statements regarding products, including regarding their features, availability, functionality, orcompatibility, are provided for informational purposes only and do not modify the warranty, if any,applicable to any product. Drawings may not be to scale. Micron, the Micron logo, and all other Micron
trademarks are the property of Micron Technology, Inc. All other trademarks are the property of theirrespective owners.

1June 20, 2018

Safe Harbor Statement
During the course of this meeting, we may make projections or other forwardlooking statements regarding future events or the future financial performance ofthe Company and the industry. We wish to caution you that such statements arepredictions and that actual events or results may differ materially. We refer you tothe documents the Company files from time to time with the Securities andExchange Commission, specifically the Company’s most recent Form 10-K andForm 10-Q. These documents contain and identify important factors that could
cause the actual results for the Company to differ materially from those containedin our projections or forward-looking statements. These certain factors can befound at http://www.micron.com/certainfactors. Although we believe that theexpectations reflected in the forward-looking statements are reasonable, we cannot
guarantee future results, levels of activity, performance, or achievements. We areunder no duty to update any of the forward-looking statements after the date of thepresentation to conform these statements to actual results.

2

September 20, 2018

Sanjay Mehrotra
President and CEOFiscal 2018 – A Year of Unprecedented Success

FY18

Record revenue, gross margin,
free cash flow and EPS

FY184FY18

Improved balance sheet withrecord net cash position of $2.7B

September 20, 2018

Memory and storage markets
fueled by diversified demand
growth

FY18

Sharpened execution resulted in
improved technology position,
cost position and productportfolio mix

Strong Technology Roadmap Execution

DRAM

NAND

▪ 1Xnm: On track to achieve total production
output crossover in FQ1-19▪ 96L: On track to have production in CY-18− Achieved 1Xnm crossover in Client andGraphics in FQ4-18▪ 4th generation: Good progress ondevelopment; based on Replacement Gateand CMOS under the array architecture▪ 1Ynm: Sales to commence in CY-19, withmeaningful production starting in FQ3-19▪ 1Znm: Good progress on development

5

September 20, 2018

Accomplishments by End MarketSSDs▪ Record FQ4-18 revenue in SSDs with Enterprise & Cloud revenue > double Y/Y▪ SSD revenues exceeded $2 billion for FY-18

Datacenter▪ Fueled by big data analytics, more than 1/3 of FY-18 revenues from Datacenter & Graphics▪ Working closely with customers on new technologies

Embedded▪ Record FQ4-18 Automotive revenue, with strong future design win pipeline▪ Multi-year $3 billion investment announced for Manassas, Virginia fab long-term growthMobile▪ Record FQ4-18 Mobile and multi-chip package (MCP) revenue▪ Shipped first high-performance UFS managed NAND products in FQ4-18
6

September 20, 2018

Industry Outlook
CY-18▪ Industry bit output growth tracking slightly above 20%▪ Micron bit output growth in-line with the Industry

CY-19▪ Industry bit output growth expected to be ~20%
▪ Micron bit output growth in-line with the Industry

CY-18▪ Industry bit output growth ~45%
▪ Micron bit output growth in-line with the Industry

CY-19▪ Industry bit output growth expected to be 35%-40%▪ Micron bit output growth somewhat above Industry

DRAM

NAND
7

September 20, 2018

Dave Zinsner
Chief Financial Officer

Financial Metrics▪ Revenue− $8.44 billion in FQ4-18− $30.39 billion in FY-18▪ GAAP gross margin− 61% in FQ4-18− 59% in FY-18▪ Non-GAAP gross margin− 61% in FQ4-18− 59% in FY-18▪ Non-GAAP operating expenses of $740 million in FQ4-18▪ Non-GAAP operating income of $4.44 billion in FQ4-18

9September 20, 2018

Compute & Networking Business Unit
FQ4-18

Revenue $% of total company revenue
Operating income $Operating income %FQ3-18

FQ4-17

4.36B $

3.99B $

2.85B

52%

51%

46%

2.91B $

2.62B $

1.60B

67%

66%

56%

CNBU

▪ Record quarterly revenue up 9% Q/Q and 53% Y/Y▪ Strong growth trends in Cloud & Graphics, with revenue almost double
Y/Y10

September 20, 2018

Mobile Business Unit
FQ4-18

Revenue $% of total company revenue
Operating income $Operating income %FQ3-18

FQ4-17

1.90B $

1.75B $

1.18B

22%

22%

19%

979M $

860M $

364M

52%

49%

31%

MBU

▪ Record quarterly revenue up 8% Q/Q and 60% Y/Y▪ Sequential growth driven by MCPs and discrete managed NAND

11September 20, 2018

Embedded Business Unit
FQ4-18

Revenue $% of total company revenue
Operating income $Operating income %FQ3-18

FQ4-17923M $

897M $

827M

11%

12%

13%

382M $

386M $

348M

41%

43%

42%

▪ Record quarterly revenue up 3% Q/Q and 12% Y/Y▪ Growth driven by Automotive and Industrial markets

12

September 20, 2018

EBUStorage Business Unit
FQ4-18

Revenue $% of total company revenue
Operating income $Operating income %FQ3-18

FQ4-17

1.24B $

1.14B $

1.30B

15%

15%

21%

157M $

156M $

250M

13%14%19%▪ Revenue up 9% Q/Q and down 4% Y/Y▪ Further strengthened SSD market presence− Record SSD revenue, driven by SATA SSD market leadership position

13*SBU includes SSD, NAND component and 3D XPoint sales

September 20, 2018

SBU

Performance by Product Line
▪ 70% of overall company revenue in FQ4-18▪ Revenue up 7% Q/Q and up 47% Y/YDRAM▪ ASPs relatively flat Q/Q▪ Shipment quantities up mid-to-upper single digit percent Q/Q▪ Non-GAAP Gross Margin of 71% in FQ4-18 vs 69% in FQ3-18, 59% in FQ4-17▪ 26% of overall company revenue in FQ4-18TradeNAND▪ Revenue up 15% Q/Q and 21% Y/Y▪ ASPs down mid-teens percent range Q/Q▪ Shipment quantities up mid-30s percent range Q/Q▪ Non-GAAP Gross Margin of 48% in FQ4-18 vs 47% in FQ3-18, 40% in FQ4-17

14

September 20, 2018

Other Financial Metrics▪ Non-GAAP Earnings Per Share− $3.53 in FQ4-18▪ Non-GAAP net income− $14.70 billion in FY-18− Diluted EPS: $11.95 per share in FY-18▪ Operating cash flow
− $5.2 billion in FQ4-18▪ Capital spending*− $2.1 billion in FQ4-18− $8.2 billion in FY-18

15*Net of partner contributions

September 20, 2018

FY 2019 Investment Plans

FY 2019 Capex*$10.5B +/- 5%▪ Investments focused on closing the DRAM technology gap with competitors whilemaintaining flat wafer capacity▪ Expect ~25% of capex spending associated with facilities expansions and facilities
upgrades needed for technology transitions▪ Expansion and upgrade projects already underway and expect FY-19 capex to be moreweighted to 1H-19

16*Net of partner contributions

September 20, 2018

Record Net Cash Position in FQ4-18▪ FQ4-18 free cash flow* of $3.1 billion▪ Reduced gross debt position by ~$2.7 billion in FQ4-18▪ Transitioning from debt reduction to capital returns in FY-19 via share repurchases
Total CashTotal GAAP Debt

$12.4B$11.6B$11.1B

InoteraAcquisition
Debt

$9.6B

$9.0B

$8.7B

$9.3B

$7.7B
$6.2B

$4.4B

FQ1-1717$4.6B

FQ2-17

$7.3B

$6.6B

$4.9B

FQ3-17

$7.4B

$4.6B

FQ4-17

FQ1-18*Free cash flow consists of cash provided by operating activities less investments in capital expenditures, net of partner contributions
September 20, 2018
Cash includes short-term investments, long-term investments, and restricted cash
Debt is GAAP value including current portion and long-term debt

FQ2-18

FQ3-18

FQ4-18

FQ1 2019 GuidanceNon-GAAP
FQ1-19 Guidance$7.90 billion – $8.30 billion

Revenue

57% – 60%

Gross margin

Operating expenses$750 million +/- $25 million

Diluted EPS*

18

*Based on ~1,198 million diluted shares$2.95 +/- $0.07

September 20, 2018

Financial Summary
Non-GAAP
Dollars in millions, except per share

19

FQ4-18% of Sales

FQ3-18% of Sales

FQ4-17% of Sales

Net sales

8,440

100%

7,797

100%

6,138

100%

Gross margin

5,17961%

4,75061%

3,14751%

Operating income

4,43953%

4,01752%2,546

41%

Income tax (provision) benefit(131)

Net income attributable to Micron

4,313

Diluted earnings per share

3.53

3.15

2.02

Cash provided by operating activities

5,155

4,261

3,203

Cash, marketable investments, andrestricted cash

7,356

7,677

6,152

(97)

51%

September 20, 2018

3,898

(60)

50%

2,386

39%

Financial Summary
Non-GAAP
Dollars in millions, except per share

FY-18% of Sales

FY-17% of Sales

Net sales

30,391

100%

20,322100%

Gross margin

17,994

59%

8,639

43%

Operating income

15,24350%

6,232

31%Income tax (provision) benefit

(418)

(173)

Net income attributable to Micron

14,70048%

5,648

Diluted earnings per share

11.95

4.96

Cash provided by operating activities1

17,4008,514

Cash, marketable investments, and restricted cash

7,356

6,152

28%

1FY-17 operating cash flows of $8,514 million is equal to GAAP operating cash flows of $8,153 million, plus $361 million of the Inotera purchase price, which was reflected for GAAP as an operating

cash outflow.

20

September 20, 2018

Non-GAAP Reconciliations

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts
GAAP net income attributable to Micron
Non-GAAP adjustments:
Stock-based compensation$

FQ3-183,823 $

FQ4-172,368

474857

Flow-through of Inotera inventory step up——

11Restructure and asset impairments

78(27)

Amortization of debt discount and other costs

2323

32

(Gain) loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates
Other(1)158168
24
1037
12
3

Impact of U.S. income tax reform

(83)

(222)

—

Estimated tax effects of above and changes in net deferred income taxes(28)

16(107)

(12)

75

18

4,313 $

3,898 $

2,386

1,2164
1,220

1,235
3
1,238

1,187(6)1,181$

3.56 $

3.10 $

1.99$(0.03)
3.53 $

0.05
3.15 $

0.03
2.02

Total non-GAAP adjustments
Non-GAAP net income attributable to Micron$

GAAP shares used in diluted EPS calculations
Adjustment for stock-based compensation and effect of capped calls
Non-GAAP shares used in diluted EPS calculations
GAAP diluted earnings per share
Effects of above
Non-GAAP diluted earnings per share22FQ4-18
4,325 $

September 20, 2018

Consolidated Results
Non-GAAP Reconciliations
Amounts in millions, except per share amounts
GAAP net income attributable to Micron
Non-GAAP adjustments:
Stock-based compensation$FY-17
5,089

198

215

Flow-through of Inotera inventory step up
Restructure and asset impairments
Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions(Gain) loss from changes in currency exchange rates

—
28101
385
75

107
34
125
10074

(Gain) loss from business acquisition activities
Other—
28(71)
34(174)—(76)
565
14,700 $(59)
559
5,648

GAAP shares used in diluted EPS calculations

1,229

1,154

Adjustment for stock-based compensation and effect of capped calls
Non-GAAP shares used in diluted EPS calculations

11,230(14)1,14011.51 $
0.44
11.95 $

4.41
0.55
4.96

Impact of U.S. income tax reform
Estimated tax effects of above and changes in net deferred income taxes
Total non-GAAP adjustments
Non-GAAP net income attributable to Micron

GAAP diluted earnings per share
Effects of above
Non-GAAP diluted earnings per share

23FY-18
14,135 $$$$September 20, 2018

Consolidated Statement of Operations
FQ4 2018 Non-GAAP Reconciliation
Amounts in millions
Net sales$

Cost of goods sold
Gross margin

3,289
5,151

Non-GAAP$
8,440(28) A,H
28

3,261
5,179

Selling, general, and administrative

215

(13)

B

202

Research and development

567(14) C,H

553(15)

Other operating (income) expense

(8)

(7)

Total operating expenses

774

(34)

740

4,377

62

4,439

(16)
(15)
4,346

23
1499

EF,G7(1)4,445Income tax (provision) benefit

(20)

(111)

I,J

(131)

Equity in net income (loss) of equity method investees

———

4,326

(12)

4,314

(1)

—(1)

4,325

(12)

4,313

Operating income
Interest expense, net
Other non-operating income (expense), netNet income
Net income attributable to noncontrolling interests

Net income attributable to Micron

24

GAAP
Adjustments
8,440 $—

September 20, 2018

DConsolidated Statement of Operations
FQ4 2018 Non-GAAP Reconciliation (continued)
Amounts in millions
AB
CD

Stock-based compensation – cost of goods sold
Stock-based compensation – sales, general, and administrative
Stock-based compensation – research and development
Restructure and asset impairments

EF

Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions

23(1)

GH

(Gain) loss from changes in currency exchange rates
Other158I

Impact of U.S. income tax reform

(83)

J

Estimated tax effects of above and non-cash changes in net deferred income taxes

(28)

$

$

25

September 20, 20182113137(12)Consolidated Statement of Operations
FY 2018 Non-GAAP Reconciliation
Amounts in millions
Net sales$

Cost of goods soldGross margin

12,50017,891

Selling, general, and administrative813

Research and development

2,141

Other operating (income) expense

Non-GAAP$30,391(103) A,H
103
(61)

12,397
17,994

B752(57) C,H

2,084(57)(28)

Total operating expenses

2,897(146)2,751Operating income

14,994249

15,243(222)(465)
14,307101E465 F,G,H
815

(121)
—15,122

Interest expense, net
Other non-operating income (expense), net
Income tax (provision) benefit
Equity in net income (loss) of equity method investees
Net income
Net income attributable to noncontrolling interests
Net income attributable to Micron26

GAAP
Adjustments
30,391 $—September 20, 2018

DI,J

(85)

(168)

(250)

(418)

(1)
14,138—565(1)14,703

(3)

—

(3)

14,135565

14,700Consolidated Statement of Operations
FY 2018 Non-GAAP Reconciliation (continued)
Amounts in millions
AB
C
D

Stock-based compensation – cost of goods sold
Stock-based compensation – sales, general, and administrative
Stock-based compensation – research and development
Restructure and asset impairments

EF

Amortization of debt discount and other costs(Gain) loss on debt repurchases and conversions

101385GH(Gain) loss from changes in currency exchange rates
Other75
28

I

Impact of U.S. income tax reform

(174)

J

Estimated tax effects of above and non-cash changes in net deferred income taxes

(76)
565$

$

27

September 20, 2018

83615428

Summary Key Data

Non-GAAP Financial Data and Guidance% of Revenue

FQ4-18

FQ4-18 Non-GAAP(amounts in millions,except per share)

FQ4-17

DRAM

70%

66%

Trade NAND*26%

30%

Revenue $Gross margin% Sales Volume
ChangeDRAM
Trade NAND*% ASP Change

FQ4-18Q/QDRAM

Relatively flat

Trade NAND*Decreased midteens % range

Gross Margin29

FQ4-18
Q/Q
Increased midto-upper single
digit %
Increased mid30% range

FQ4-188,44061%

FQ1-19 Non-GAAP Guidance$7.90 billion – $8.30 billion
57% – 60%

FQ4-18Y/Y

Operating expenses $740

$750 million +/- $25 million

Increased upperteens % range

Earnings per share $3.53$2.95 +/- $0.07

Increased high
50% range
FQ4-18
Y/Y
Increased lower20% range
Decreased mid20% range

FQ4-17DRAM

71%

59%

Trade NAND*48%40%See Non-GAAP reconciliations*Trade NAND excludes products sold to Intel through IMFT under a long-term supply
agreement at prices approximating cost.
(a) Net of amounts funded by partners

FQ4-18 Non-GAAP(amountsin millions)
Diluted shares

FQ1-19 Non-GAAP Estimates

1,220~1,198 millionTax (provision) benefit $(131)

FY-19: ~12% of PBTOperating cash flow $

5,155

—

Depreciation and amortization $

1,282

—

Capital expenditures(Capital cash flow) (a) $2,062

FY-19: $10.5 billion +/- 5%

September 20, 2018

Convertible Notes Dilution Overview(shares in millions)

Stock Price2032 C Notes
2032 D Notes
2033 E Notes
2033 F Notes
2043 G Notes
Total dilutive shares
Benefit from capped call
Net dilution

Actual
FQ4-18*213—71638(2)
36

$35
—

$38—

$41—

$44—

$47
—

$50—

$53—

$56—

$59—

$62—

$65
—

10—
56
21

11—
5824

11—
5
10
26

11—
51228

11—
5
13
29

11—
5
15
31

12—
516
33

12—
517
34

12—
51835

12—
51936

12—
519
36(3)
18(3)
21(2)
24(2)
26(2)
27(2)
29(2)
31(2)
32(2)
33(2)
34(2)
34

Note: Except for FQ4-18 dilution, the table above presents the potential dilutive impact of convertible
notes outstanding as of August 30, 2018 over the range of trading prices for Micron’s stock.

30*Represents the actual dilutive impact of convertible notes for FQ4-18 diluted sharecount based on an average share price of $54.42 for the quarter.

September 20, 201831

June 20, 2018